2016 PAYROLL & TAX-RELATED REGULATORY CHANGES

Equip your business for the year ahead! The following tax guides were created to keep you informed and confident in your payroll management. 

Scroll down for our payroll calendar, state-by-state information, federal wage & tax rates, and more. 

Stay updated on the latest payroll and tax regulations with the following:

All guides were published on January 15, 2016. Please check back for updates.

FREE: THE FULL 2016 QUICK WAGE & TAX GUIDE

 

Get the complete, state-by-state guide for free by clicking here:

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Click here to download our free payroll processing calendar, too!

 

STATE-BY-STATE: CURRENT WAGE & TAX INFO 

Alabama Louisiana Oklahoma
Alaska Maine Oregon
Arizona Maryland Pennsylvania
Arkansas Massachusetts Puerto Rico
California Michigan Rhode Island
Colorado Minnesota South Carolina
Connecticut Mississippi South Dakota
Delaware Missouri Tennessee
District of Columbia Montana Texas
Florida Nebraska U.S. Virgin Islands
Georgia Nevada Utah 
Hawaii New Hampshire Vermont
Idaho New Jersey Virginia
Illinois New Mexico Washington
Indiana New York West Virginia
Iowa North Carolina Wisconsin
Kansas North Dakota Wyoming
Kentucky Ohio  

 

FEDERAL WAGE & TAX RATES

Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. This limit is adjusted each year with changes in the national average wage index. This annual limit is called the contribution and benefit base.

For earnings in 2016 (unchanged from 2015), the Social Security taxable wage base is $118,500.

FICA - Social Security (OASDI Only) [top]

Social Security Taxable Wage Base per Employee $118,500
Employer Tax Rate for Social Security 6.2%
Employee Tax Rate for Social Security 6.2%
Self-Employed Tax Rate for Social Security 12.4%

 

FICA – Medicare (Hospital Insurance Only) [top]

Medicare Taxable Wage Base per Employee No Limit
Employer and Employee Tax Rate for Medicare 1.45%
Self-Employed Tax Rate for Medicare 2.9%

 

FUTA – Federal Unemployment Tax Act [top]

FUTA Taxable Wage Base per Employee $7,000
Employer Net Tax Rate 0.6%

 

FEDERAL MINIMUM WAGE RATES [top]

Below are the federal minimum wage rates. Please note that some states have minimum wages that are higher than federal rates. Effective 7/24/2009.

  Minimum Wage Tipped Employee: Min. Wage Tip Credit (MAX)
Federal $7.25 $2.13 $5.12

 

For information on state minimum wage rates, head to the Department of Labor’s website by clicking here: State minimum wage rates.

PENSION PLAN LIMITS [top]

The federal government sets dollar limits as to how much an employee can contribute to their company’s qualified retirement plan each tax year. These limits are based on the cost-of-living index. If an employee reaches the age of 50 during the current tax year, they will qualify for the “Catch-Up Provision"… only if it is an established provision of the company’s 401(k) plan.

These limits have remained the same from 2015.

  Standard 'Catch-Up' Provision
401(k) Limit for $18,000 $24,000
SIMPLE IRA Plan for $12,500 $15,500